New Delhi: Farmers in six states will soon be able to sell cow dung at ₹1 per kilogram, after the National Dairy Development Board (NDDB) fixed a procurement price for use in compressed biogas plants. The move is part of a growing India-Japan partnership in clean energy, an official said, reported Hindustan Times.
The NDDB, which promotes and supports dairy cooperatives, is setting up 15 biogas plants in Gujarat, Rajasthan, Odisha, Goa and Bihar. To run these plants, supply chains are being developed to buy animal waste directly from farmers, the official added.
Clean energy has emerged as an important part of agricultural cooperation between India and Japan. During Prime Minister Narendra Modi’s visit to Tokyo last month, Japanese companies announced plans to invest $68 billion in India across sectors such as renewable energy, mobility, semiconductors and artificial intelligence, another official said.
Suzuki Motor Corporation has tied up with NDDB to establish compressed biogas plants. Compressed biogas is a purified form of biogas produced from animal waste and can be used as a renewable fuel.
“Suzuki R&D Center India is investing in NDDB Mirda Ltd., NDDB’s biogas arm, to set up dung-based compressed biogas plants. Suzuki will initially take a 26% stake in the company, with an option to raise it to 49% later,” the first official said.
As per the news report by The Hindustan Times, NDDB’s 15 plants will need about 1,500 tonnes of cow dung every day. At ₹1 per kg, this means farmers will collectively earn ₹15 lakh daily, or nearly ₹55 crore annually. Alongside NDDB, other public and private firms are also planning to invest more than ₹1,400 crore in new bio-energy projects that will use farm waste.
The Modi government had set a target in 2018 to build 5,000 biogas plants by 2024 to produce 54 million cubic meters of gas per day, roughly half of India’s current demand. But with only 114 plants in operation, the goal remains unmet.
Meanwhile, Japan’s Sojitz Corporation, in partnership with Indian Oil, has announced a $395 million investment to set up 30 biogas plants using crop waste. Sojitz has invested in IOC GPS Renewables Pvt. Ltd. (IGRPL), a joint venture between GPS Renewables and Indian Oil.
“Farmers will provide crop residues and agricultural waste under contracts at fair prices. IGRPL aims to have 30 biomethane plants running in India by 2026-27,” a company spokesperson said.
Experts say converting crop waste and animal residue into biogas could help India reduce its dependence on imported fuel and also curb air pollution caused by stubble burning. India imported liquefied natural gas worth $13.3 billion in FY25, according to petroleum ministry data.
